US employers added just 57,000 jobs in June, far below expectations

Gaya Gupta in Washington Thu, July 2, 2026 at 6:21 AM PDT 3 min read

A hiring sign for sales professionals is displayed at a store in Vernon Hills, Illinois, on 15 April 2026. Photograph: Nam Y Huh/AP

US job growth slowed in June as employers added just 57,000 new jobs — roughly half of what economists had predicted. The Bureau of Labor Statistics also revised its figures for the previous two months downward by a total of 74,000.

The country's unemployment rate dropped slightly to 4.2%, but the number of unemployed people changed little, according to the latest data, as 720,000 people left the labor force. The bureau revised the unexpectedly high May figures from 172,000 new jobs to 129,000, and revised the April figures from 179,000 to 148,000.

Though the numbers fell short of economists' expectations, the average number of jobs added over the last three months was about 111,000, indicating a relatively strong job market despite economic uncertainty and higher inflation brought on by the war in the Middle East. The figures also remain much higher than the sluggish growth seen last fall and winter.

Private employers added 98,000 jobs in June, according to data from payroll supplier ADP, and pay was up 4.4% year-over-year for those who have stayed in their jobs for the year. Workers in finance saw the highest increase in their annual pay, at 5%.

The healthcare industry, which has so far been key in driving job gains, added 22,000 jobs in June — a slower pace than its average monthly gain of 38,000. The hospitality and leisure industry unexpectedly declined by 61,000, reflecting weaker than usual seasonal hiring despite the World Cup soccer matches hosted across the US.

According to data from the Bureau of Labor Statistics, also released earlier this week, the number of job openings, hires and voluntary separations all changed very little in May, indicating that the economy is still in a "low hire, low fire" mode.

"The pace of hiring is telling a story of both supply and demand. We know it's taking people longer to find work, but there also are signs of labor supply constraints in certain industries," said Dr Nela Richardson, ADP's chief economist. "For now, the overall effect is a slowdown in job creation."

The latest jobs numbers make it all the more likely that the US Federal Reserve will continue to focus on inflation at its next meeting in late July. Last month, the Fed's new chair, Kevin Warsh, emphasized "price stability" in his first press conference since taking office and said the central bank will continue to pursue its longstanding goal of a 2% inflation rate. But this week, he told a conference of central bankers that "inflation risks have come down."

Since February, the war in the Middle East has rapidly pushed up inflation, reaching a three-year high of 4.2% in May. Despite the fragile peace deal reached between the US and Iran, prices at the pump remain elevated, and it is unclear whether the June inflation figures — scheduled for release later this month — will reflect the latest negotiations.

In their June meeting, Fed officials also released projections indicating that most members believed at least one rate hike would occur before the end of the year. The central bank has held rates steady since December.